Roundup: Tokyo stocks close lower on Wall Street's drop, exporters retreat
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E-mail Xinhua, May 25, 2022
TOKYO, May 25 (Xinhua) -- Tokyo stocks ended lower Wednesday following Wall Street's overnight retreat, with exporters hit by the yen's rise to a near-one-month high versus the U.S. dollar.
The 225-issue Nikkei Stock Average dropped 70.34 points, or 0.26 percent, from Tuesday to close the day at 26,677.80. The broader Topix index, meanwhile, shed 1.68 points, or 0.09 percent, to finish at 1,876.58.
Local brokers said that some investors refrained from making bold moves ahead of the next U.S. Federal Open Market Committee meeting (FOMC) amid concerns over the Fed's aggressive moves to combat rising inflation.
"We have not seen any market-moving cues and investors were cautious in making bets ahead of the next FOMC meeting," Shuji Hosoi, a senior strategist at Daiwa Securities, was quoted as saying.
"There has not been any sign that would ease concerns about an economic slowdown. However, domestic equities have fallen to a level where investors could buy them cheap," Hosoi said.
They also pointed to currency moves as hurting some issues, particularly those with a broad exposure to overseas markets, such as exporters, as the U.S. dollar reached the 127 yen line in Tokyo, after dropping to a one-month low of 126.37 yen in New York.
By the close of play, farm and fishery, service and transportation equipment issues comprised those that declined the most on the Prime Market, while 83 ended the day unchanged.
Exporters losing ground included automakers, with Honda Motor reversing 2.2 percent, while Nissan Motor lost 0.2 percent.
Heavily-weighted tech startup investor SoftBank Group weighed on the broader market, dropping 1.7 percent, while other tech-oriented issues like Alps Alpine lost 1.4 percent, while Murata Manufacturing slipped 1.4 percent.
Bucking the downward trend, Toshiba climbed 2.4 percent, following reports the state-backed fund Japan Investment Corp. (JIC) is considering acquiring the Japanese conglomerate.
On the Prime Market on Wednesday, 1,164.92 million shares changed hands, rising from Tuesday's volume of 1,113.51 million shares.
The turnover on the second trading day of the week came to 2,719.05 billion yen (21.39 billion U.S. dollars). Enditem
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